GACC Decree No. 231 on Origin in Least-Developed Countries under Special Preferential Tariff

[2017-03-14 15:48:36]

The General Administration of Customs of China (GACC) hereby promulgates the latest version of its “Administrative Measures on the Origin of Import Goods from Least-Developed Countries under Chinese Special Preferential Tariff Treatment”, which was adopted on 27 February 2017 and shall enter into force on 1 April 2017.

However, as of the issue date of this Decree as below, the import goods compliant with the origin criteria herein may be declared for application of special preferential tariff treatment.

Meanwhile, the old versions of the Administrative Measures respectively promulgated in GACC Decrees No. 192 of 2010 and No. 210 of 2013 shall be repealed on the issue date as below.

YU Guangzhou
Minister of China Customs
March 1, 2017

China Customs Administrative Measures on the Origin of Import Goods from Least-Developed Countries under Chinese Special Preferential Tariff Treatment (Translated)

Article 1 These Measures are formulated in accordance with the Customs Law of the P. R. China and the Regulations of the P. R. China on the Places of Origin of Import & Export Goods.

Article 2 These Measures are applicable to the administration of the places of origin of import goods from the least-developed countries in diplomatic relationship with China (hereinafter referred to as the favored countries) and covered by China’s special preferential tariffs.

Article 3 Where in compliance with any of the following conditions, the import goods shall be deemed as originating in the favored countries and, where directly transported from the favored countries, the goods may be eligible for the special preferential import-duty rates listed in China Customs Import & Export Tariffs (hereinafter referred to as the Tariff Schedule):

(1) Totally acquired or produced within any of the favored countries;

(2) Produced in the favored countries by use of native materials in accordance with these Measures;

(3) Their substantial transformations are completed within any of the favored countries, although they are not totally acquired or produced therein.

Article 4 The goods “totally acquired or produced within any of the favored countries” as described under Article 3 herein shall refer to:

(1) Live animals born and raised within a favored country;

(2) The goods derived from the animals said in the Item (1) of this Article above;

(3) Plants and plant products produced within a favored country;

(4) The goods acquired from hunting or fishing within a favored country;

(5) Fishes, shellfishes and other marine organisms captured by the vessels registered with a favored country and flying its national flag from external waters that the favored country has the right to exploit;

(6) The goods derived from the processing of the goods specified in the Item (5) of this Article by the processing vessels registered with a favored country and flying its national flag;

(7) Minerals and other natural substances produced in a favored country, or the goods acquired from external waters, seabeds or seabed subsoil that the favored country has the right to exploit, except fishes, shellfishes and other marine organisms;

(8) Waste articles collected within a favored country and only usable for material recycling;

(9) Scrap articles produced from the processing within a favored country and only usable for material recycling;

(10) The goods produced from the processing of the goods listed by the Items (1)-(9) of this Article within a favored country.

Article 5 The goods not totally acquired or produced within the favored countries, but compliant with the Specific Rules of Origin on the Goods from the Least-Developed Countries in Diplomatic Relationship with the P. R. China, shall be deemed originating in the favored countries provided that their processed products have changes in their four-digit HS Codes in the Tariff Schedule.

Article 6 Unless otherwise regulated by the Specific Rules of Origin aforesaid, where the goods produced from non-originating materials within a favored country have regional value composition not less than 40% of the price of resulting products, such goods shall be deemed as originating in the favored country.

The regional value composition herein shall be calculated for their ratio by the following formula:

Article 7 Where China-made goods or materials are used in a favored country for producing other kinds of goods, the China-made goods or materials shall be deemed as originating in the favored country.

If the favored country belongs to a regional group of states, where goods or materials made in other favored countries of the regional group are used in the favored country for producing other kinds of goods, the goods or materials from other favored countries may be deemed as originating in the favored country.

Article 8 The determination of the origin shall not be affected by the slight processing or treatment as follows:

(1) The processing or treatment for keeping goods in order during their transport or storage;

Article 9 As regards a complete set of goods, where part of them are not originating in a favored country but the price of the part is less than 15% of the complete goods price, the complete set shall be still deemed originating in the favored country.

Article 10 The determination of the origin of goods shall not be affected by the origin of the following materials that are not components of the goods:

(1) Fuel, energy, catalyst and solvent;

(2) Devices and articles for testing goods;

(3) Glove, spectacle, shoe, clothes, safety devices;

(4) Tool, mould, and swage die;

(5) Maintenance tools and materials;

(6) Lubricant, oil, synthetic materials;

(7) Other goods used in production

Article 11 Where the criterion of Change of Tariff Classification is applied to goods, the determination concerning the origin of the goods shall neither be affected by the origins of their packages and containers that are imported along with the goods and classified along with the goods in Chinese Tariff Schedule, nor by the origins of normal accessories, spare parts, tools, and descriptive materials of the goods.

Where the criterion of regional value composition is applied to goods, the calculation of the regional value composition shall involve the prices of the packages and containers imported along with the goods and classified along with the goods in the Tariff Schedule as well as the prices of normal accessories, spare parts, tools, and descriptive materials of the goods.

Article 12 Where the goods are transported to China via other countries/regions in compliance with all of the following conditions, they shall still be deemed as “directly transported” to China:

(1) Without entry into the trading or consumption area in other countries/regions;

(2) In transit from other countries/regions, the goods are not given special treatments except loading, unloading or other necessary actions to keep them in order;

(3) Under supervision of the Customs of the transit countries/regions.

The stay of the goods at other countries/regions shall not last longer than six months at most.

Article 13 The goods suspected of evading these Measures shall not be eligible for the special preferential treatment.

Article 14 Within 14 days upon the import declaration, the consignee shall fill out the China Customs Declaration Form for Import Goods, indicating the applicable special preferential duty rates therein, and also submit the documents required as follows:

(1) The original and the second copy of valid Certificate of Origin (as shown in the Annex 1) that are issued by the certifying agencies designated by the governments of the favored countries;

(2) The original of the commercial invoice of the goods concerned;

(3) The through transportation documents of the goods concerned:

1. As regards the direct transport to China, the consignee shall submit the transport documents issued by the export-favored countries;

2. As regards the transport via other countries/regions to China, the consignee shall submit relevant certificates issued by the Customs of other countries/regions;

3. Where China Customs has received e-certificate of origin and other e-documents through information exchange system from the importers, corresponding paper documents may be omitted from submission by the importers.

Article 15 Where the consignee fails to submit the Certificate/Declaration of Origin when declaring the import, or the Customs has not got corresponding electronic information, the consignee shall re-declare to the Customs regarding the origin status of goods concerned (see the Annex 3).

Article 16 Where meeting all of the following conditions, the consignee may apply to the customs for return of its paid deposits within one year as of the date of payment:

(1) The consignee has declared the originating status to the customs upon the importation and indicated the applicable special preferential duty rates;

(2) The consignee has submitted valid original Certificate of Origin, and its second copy, as well as other documents as required.

Where the consignee fails to apply within one year for return of its cash deposit, the customs shall subsequently conduct conversion of the deposit into import tax amount.

Article 17 The Certificates of Origin required shall comprise one original and three copies; the three copies refer to the second copy that shall be submitted to the customs for examination, the third copy that shall remain with the certifying agencies of the export-favored countries, and the fourth copy that shall remain with the exporters.

Article 18 The Certificates of Origin herein shall be valid for one year as of their issue dates.

Article 19 The Certificates of Origin herein shall be compliant with all of the following conditions:

(1) Issued by the certifying agencies at the time of exportation or within five days after the exportation;

(2) In compliance with the format as listed in the annex hereto and written in English;

(3) Stamps are consistent with their samples provided by the favored countries to China Customs;

(4) Stamped by the customs of the export-favored countries;

(5) One or more goods listed therein are of the same one batch to import;

(6) Certificate numbers are non-redundant or non-duplicate;

(7) Providing evidence that the goods originate in the favored countries concerned;

(8) Within the period of validity.

Article 20 In the event that China customs hold suspicion concerning the compliance of the Certificates of Origin and of the goods, the GACC may request the Customs or certifying agencies of the favored countries to conduct examination thereof and give reply within 180 days upon their receipt of the request;

Where necessary, upon the consent of the favored countries, the GACC may conduct field investigation of the exporter or manufacturer business premises with respect to the examination by local authorities.

Where no reply is received within the time limit aforesaid, the goods involved shall not be eligible for the special preferential tariff.

During the waiting for the examination reply, the customs may release the goods after levying cash deposits based on applicable MFN duty rates, general duty rates or other duty rates and may conduct corresponding formalities and statistics.

Based on the reply received, China Customs shall immediately conduct return of the deposits or conversion of the deposits into import tax amount.

As regards any restricted imports or suspiciously illegal imports, the Customs shall not release prior to the examination reply.

Article 21 Where the Certificate of Origin is lost or damaged and still unused, the importer may request the exporter to apply based on the fourth copy to the original certifying agency for an approved copy of the Certificate, which shall bear the wording in its remark “Approved Authentic Copy of the Original Certificate (No. _____ Date_____)”; upon submission of the approved copy to China Customs, the former original certificate shall become invalid.

Where the original certificate is already in use, such an approved copy shall be invalid.

Article 22 Under any of the following circumstances, the Certificate of Origin may be re-issued within twelve months as from the date of exportation:

(1) As a result of force majeure, failure to issue a Certificate of Origin at the time of the exportation or within five days after the exportation;

(2) Although surely issued by authorized agencies, a Certificate of Origin is rejected at the time of importation by reason of its incompliance with the provisions of Article 19 herein.

The re-issued Certificates shall be indicated with the wording of “Re-issued”.

Under the Item (1) of this Article, the re-issuance shall be valid within one year as from the actual date of exportation;

Under the Item (2) of this Article, the period of validity of the re-issued Certificates shall be consistent with that of the former Certificates.”

Article 23 Under any of the following circumstances, the import goods shall not be eligible for the special preferential duty rates:

(1) The place of origin is not compliant with these Measures;

(2) Upon the importation, the consignee neither submits valid Certificate of Origin original and second copy nor instead declares for the originating status of the goods;

(3) The stamps on the Certificates of Origin are not consistent with the samples held by China Customs;

(4) The goods listed on the Certificates of Origin are not consistent with the goods to really import;

(5) China Customs fail to receive reply within 180 days from the favored countries concerning origin examination, or their replies fail to provide adequate information on authenticity;

(6) The consignee or its agent commits other breach of these Measures.

Article 24 Unless otherwise regulated by law, China Customs shall not disclose or utilize for other purpose any trade secrets acquired through its administration, without prior consent of the consignee.

Article 25 Any violation of these Measures and other China law/regulations shall be subjected to China Customs penalty or even criminal liability.

Article 26 Meanings of relevant phrases in these Measures:

“Favored countries” refer to the countries or regions in exchange of notes with China over the application of Chinese special preferential tariff treatment for the least-developed countries;

“Materials” refer to the goods used during the course of production of another kind of goods, including any parts, components, ingredients, and raw materials thereof;

“Originating materials” refer to the goods compliant with the rules of origin herein and used during the production of another kind of goods;

Article 27 The GACC will separately announce the “Specific Rules of Origin on the Goods from the Least-Developed Countries in Diplomatic Relationship with the P. R. China” and the list of regional groups under the special preferential treatment.

Article 28 These Measures shall be construed by the General Administration of Customs of China (GACC).

Article 29 These Measures shall enter into force as from 1 April 2017, along with simultaneous repeal of older versions of these Measures respectively set forth in GACC Decrees No. 192 and No. 210.

Annex 1. Format of the Certificate of Origin (omitted)

Annex 2. Format of the Declaration of Origin (omitted)

Annex 3. Statement of Origin Status (omitted)

Note: This English text is translated from original Chinese text for reference only and, in case of their discrepancy, the Chinese text should prevail.